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Governmental Affairs


October 14, 2005

 

KEY LEGISLATION:

Enviros Moving to Expand Bottle Deposit Law

Environmental groups are making good on their promise to try to expand the
state’s bottle deposit law by exploring the hiring of staff necessary to
conduct a petition drive. A five-member steering committee is in the process
of determining how much it would cost to undertake a statewide petition
drive to put the issue on the ballot. The group wants to expand the bottle
deposit bill to include all juice, water and sports drink containers.

Various studies conducted over the last several years have indicated that if
placed on the ballot, the public would overwhelmingly approve passage of
expanding the law. Consumers reportedly see the law as an easy, effective
way for them to recycle their products.

Retailers saddled with the law, however, know the burdens and safety issues
it places on their operations and are opposed to expanding the list of items
they are forced to accept. In addition, while 95 percent of pop and beer
cans are recycled in Michigan, they account for less than 2 percent of the
municipal solid-waste stream. Michigan currently ranks last among Great Lake
States for overall rates of recycling.


Penny Plan Seen as Alternative to
Bottle Deposit Expansion


Retailers, primarily grocery stores, are investigating a proposal that would
thwart expansion of the state’s bottle deposit law by charging a penny for
various retail transactions and using it to fund a statewide, comprehensive
recycling program. Dubbed the “Penny Plan,” legislation recently introduced
by Rep. Geoff Hansen (R-Hart) is raising some eyebrows in Lansing.

The bill’s proponents claim HB 5163 would raise approximately $42 million
per year to fund recycling efforts. Hansen’s legislation has earned the
support of retailers such as Meijer, Spartan, Dean Foods, Country Fresh,
Felpausch and the Michigan Grocers Association. Their hope is that such a
plan would eliminate the desire or need for expansion of the bottle deposit
law. In addition, such recycling efforts could alleviate the need for
legislation requiring Advanced Recovery Fees for electronic products sold at
retail to fund their recycling.

House Tax Policy Chair Fulton Sheen (R-Plainwell) has reportedly given a
flat-out no to this idea; he does not think additional taxation is the
answer, given the state’s economic woes. However, the issue may not be
completely dead—Speaker Craig DeRoche (R-Novi) apparently believes it is an
intriguing idea that needs to be investigated.


Senate Approves Securitization Plan

The Senate finally took up the House’s $1 billion securitization plan,
passing it back to the House with a few changes. The proposal seeks to sell
a third of what the state will receive over the next 20 years through the
national tobacco settlement.

Because the state is selling off the rights to $100 million a year to Wall
Street investors, the state will get a $1 billion payment up front that is
to be injected into economic development efforts through new small-business
loans and cutting-edge technology investments. Rep. Bill Huizenga
(R-Zeeland) and Rep. Andy Dillon (D-Redford) brought up the idea as an
alternative to Gov. Granholm’s $2-billion bonding proposal.

The governor, however, wasted no time issuing a press release congratulating
the legislature on passing her plan to spur new business development in the
state—a claim to which the Republicans took exception. The bill now goes to
the House for its expected concurrence, then to the governor, who is
expected to sign it.


KEY BILL INTRODUCTIONS:

No new introductions at this time.

To view the content and current status of retail-related bills, visit BillTrack,
MRA's legislative tracking database exclusively for members, at
www.retailbilltrack.com


If you are currently receiving Capitol F@cts by fax and would like to receive
it via e-mail, please contact Kathleen Wilson at 517.372.5656 or
kawilson@retailers.com.


For back issues of online Capitol F@cts, visit MRA's main Capitol F@cts page.


Specific comments or questions regarding this bulletin should be directed to:
Kathleen Wilson, Administrative Assistant to the Governmental Affairs Office at
kawilson@retailers.com.
Michigan Retailers Association
603 South Washington Avenue
Lansing, MI 48933
517.372.5656
Toll-Free: 800.366.3699
Fax: 517.372.1303
govt_affairs@retailers.com
www.retailers.com
www.mallofmichigan.com